A ” very moderate increase in rates ” is the way in which financing company summarizes the change in January fixed rates granted to individuals. The Credither Guide dissects the indicators from the latest study published by the bonding agency.
Mortgage rates rise slowly
Financing company draws the same conclusions as ours about the evolution of real estate rates. Yes, they go back up, but in a moderate way. Thus, the average rate recorded on the more than 16,000 cases handled by financing company rose in January to 1.38%, against 1.34% a month earlier (2.13% in January 2016).
Since December 2016, rates have started to rise slowly. They thus took up 7 basis points (including 4 points in January). Despite tensions that have tightened on the bond markets since the end of the summer, the rise in mortgage rates remains very moderate, says financing company. It is also much slower than the ascents that were observed in the past, during comparable episodes.
Over the reference periods, the fixed rates are 1.25% over 15 years, 1.47% over 20 years and 1.73% over 25 years.
By type of segment, the average rates in the old and the new are growing slightly in January:
- +6 basis points, at 1.40%, for a purchase in the former (1.34% in December);
- +2 basis points, to 1.42%, for a purchase in new (1.40% in December).
A loan term that decreases over a month
Buyers borrow at attractive rate terms, but how long? The average duration of loans guaranteed by financing company amounts to 17.58 years, ie 211 months (17.75 in December, or 213 months).
In terms of average cost, this represents 4.02 years of revenue (4.04 years in December, 3.80 years a year ago in the corresponding period). ” The relative cost thus remains at one of its highest levels seen since the beginning of the 2000s, ” says financing company.
Note that mortgages are mostly subscribed for the 20-25 age group (33.9%).
A production that is accelerating
Boosted by favorable rates, the production of mortgage loans is increasing. In terms of amount first, with + 10% annual rate (+ 8.3% in December). In terms of loans, activity accelerated with + 2.2% (+ 0.8% one month earlier).
What is financing company?
When buying real estate, you will have to take out a guarantee that can take the form of a mortgage, a deposit or a lien of money lenders (PPD). The guarantee makes it possible to secure the repayment of the mortgage in the event of a repayment problem on the part of the borrower.
With the guarantor, it is the third party that guarantees during the repayment phase of the mortgage. Credit Home Loan is precisely the most famous bonding company. In return, the borrower pays a guarantee fee which he recovers a portion of the amount after the repayment of its financing.